Andean Silver Uncovers High-Grade Juanita Silver-Gold Prospect at Cerro Bayo, Chile

Distinct Breccia-Hosted Silver-Gold System Diverges from Existing Vein Deposits

Recent exploration at the Juanita Prospect has uncovered a mineralisation style that fundamentally differs from the epithermal vein systems typical of Andean Silver's 330 square kilometre Cerro Bayo tenure. The discovery comprises multiple breccia-hosted silver-gold zones controlled by a steeply west-dipping normal fault traceable for over 2km. The structural features resemble those hosting major deposits elsewhere on the project, with evidence of repeated structural reactivation and multiple mineralising events suggesting a large, significant silver-gold system rather than isolated veins.

The geological traits of Juanita are notable for high-grade breccia mineralisation formed through multiple hydrothermal and mineralising phases along several structural controls. The breccias contain older mineralised volcanic host-rock clasts within a younger, strongly mineralised hydrothermal breccia matrix exhibiting variable silicification. This combination of repeated structural activity, multiple mineralising pulses, and favourable host lithologies highlights Juanita as a distinct mineralisation style warranting substantial exploration and resource definition efforts.

Exceptional Surface Sampling Confirms Juanita as a Top Exploration Priority

Andean's surface rock chip sampling at Juanita delivered exceptional assay results, underscoring the high-grade nature of the mineralisation. The top assay reached 62,663g/t silver equivalent, comprising 25,047g/t silver and 453.2g/t gold (755g/t gold equivalent). Another sample returned 41,489g/t silver equivalent (37,024g/t Ag & 53.8g/t Au), equivalent to 500g/t AuEq. Additional samples yielded 16,963g/t, 15,367g/t, 15,169g/t, 13,951g/t, and 13,680g/t silver equivalent respectively—bonanza-level grades far exceeding typical regional targets.

Breccia zones have been observed up to 18 metres wide, indicating potential for significant tonnage alongside exceptional grades. Individual breccia zones typically range from 1 to 5 metres wide, exhibiting subtle visual features with weak textural contrast to host rocks and minimal surface topographic expression. This subtlety explains why Juanita remained underexplored for around 20 years despite its potential, as limited historic drilling and subdued surface signs kept it overlooked until recent mapping and sampling highlighted its high-grade mineralisation.

Historic Drilling Highlights Underexplored Potential at Juanita

Limited scout drilling up to 2004 intersected parts of the Juanita system, but geological modelling and recent mapping indicate much historic drilling missed the most prospective breccia zones. The historic program included 17 holes totaling 1,575 metres, with only five holes and channel samples hitting higher-grade zones. Noteworthy results include drill hole BJ920 with 17.1 metres at 194g/t silver equivalent (131g/t Ag & 0.8g/t Au), including 3.3 metres at 897g/t silver equivalent, and BJ924 with 8.5 metres at 136g/t silver equivalent, including 2.1 metres at 468g/t silver equivalent (264g/t Ag & 2.5g/t Au).

Historic channel sampling also returned strong results such as 1.6 metres at 1,209g/t silver equivalent (871g/t Ag & 4.1g/t Au) and 7.2 metres at 296g/t silver equivalent (222g/t Ag & 0.9g/t Au), including 0.9 metres at 2,114g/t silver equivalent (1,728g/t Ag & 4.7g/t Au). Geological analysis suggests many historic holes failed to test the interpreted high-grade breccia zones at depth or along strike, leaving significant exploration upside for systematic modern drilling.

Juanita Lies Outside Existing 136 Million Ounce Silver-Equivalent Resource Base

The Juanita Prospect is notably located outside Andean Silver's current measured and indicated resources at Cerro Bayo, which total 136 million ounces silver equivalent, supplemented by approximately 100 million ounces mined historically. The nearby Laguna Verde processing facility, about 6km west, offers significant infrastructure advantages for developing any future resources defined at Juanita.

Juanita marks the third major new exploration area outside existing resources, alongside the Guanaco and Droughtmaster corridors. This growing prospect pipeline highlights the exploration potential across Andean's 330 square kilometre claim package and reflects the geological team's success in identifying new mineralised systems to expand the resource base and support production growth. The proximity to Laguna Verde's established processing capacity positions the company well to advance Juanita without major new infrastructure investment.

Comprehensive Exploration Program Planned to Delineate High-Grade Mineralisation Over 2km Strike

Following compelling surface and historic drilling results, Andean has launched a systematic exploration program to better define the high-grade silver-gold mineralisation at Juanita ahead of drilling. Geological mapping and sawn channel sampling are underway along the 2km Juanita trend to refine the geological and structural model, identify prime drill targets, and understand the lateral and vertical extent of breccia zones before committing to drilling.

The subtle surface expression of breccia zones necessitates detailed mapping and sampling to accurately characterize the system's geometry. The structure appears open to the south for at least 1km, representing a key focus for future exploration. This surface work aims to optimize drilling by targeting interpreted high-grade breccia zones at depth and along strike, addressing limitations of past drilling that inadequately tested the system.

Robust Cash Position Fuels Growth Drilling and Cerro Bayo Project Advancement

Andean Silver reported A$53.4 million in cash at the end of the March Quarter, providing strong financial capacity to support growth drilling and feasibility studies at Cerro Bayo. This liquidity enables the company to advance Juanita through exploration and development without immediate equity or debt financing, allowing an aggressive drilling program across multiple prospects including Juanita, Guanaco, and Droughtmaster.

Backing from the Laguna Verde processing facility and a 136 million ounce silver-equivalent resource base offers long-term production optionality and cash flow potential. This capital strength differentiates Andean from earlier-stage juniors, enabling methodical exploration phases to build resource confidence and economic viability prior to major development investment. Together, strong cash reserves, infrastructure, and an expanding prospect pipeline position Andean to deliver shareholder value through organic exploration success.

Regional Structural Controls Align with Major Cerro Bayo Deposits

Juanita lies within a significant NNW to NS trending structural corridor dominated by a steeply west-dipping normal fault hosting NW to NS trending silver-gold breccias and veins. Structural geometries at Juanita mirror those controlling major deposits across Cerro Bayo, validating the geological model through comparisons with other project deposits. The north-dipping normal fault is a major mineralisation host, suggesting Juanita may be one of several mineralised systems along this trend warranting exploration.

The fault-hosted mineralisation, favourable host lithologies, and evidence of multiple mineralising events provide a solid geological framework for targeting further exploration. Andean's detailed understanding of structural and lithological controls at Laguna Verde, Guanaco, and Droughtmaster informed Juanita's identification as a prospective target, supporting the interpretation of a significant silver-gold system. The mineral-rich district’s long silver and gold mining history boosts confidence in the exploration model and economic potential.

Multi-Phase Hydrothermal System with Repeated Structural Reactivation Drives Discovery

Juanita’s mineralisation exhibits multiple hydrothermal and mineralising events along several structural controls, with breccia zones reflecting multiple mineralising pulses identified through mapping and sampling. The polymetallic system includes older mineralised volcanic host-rock clasts within a younger, strongly mineralised hydrothermal breccia matrix showing variable silicification. This multi-phase mineralisation suggests repeated fluid flow and mineral precipitation episodes, potentially generating very high-grade zones at intersections of mineralising phases.

Repeated structural reactivation and multiple mineralising events are positive geological indicators for a large, significant silver-gold breccia system capable of supporting resource definition and economic extraction. The system’s subtle surface expression—with weak textural contrast and limited topographic relief—explains why Juanita remained underexplored for two decades despite its potential. This discovery underscores the importance of systematic geological mapping and sampling in uncovering overlooked targets and highlights the value of detailed fieldwork in evaluating mineral claims.

Andean Silver’s Cerro Bayo Operations and Strategic Exploration Outlook

Andean Silver Limited operates the Cerro Bayo Project in the Chilean Andes, a region with a rich history of silver and gold mining. The company’s 330 square kilometre claim package contains multiple mineralised systems and 136 million ounces silver equivalent in resources, supported by the Laguna Verde processing facility providing infrastructure for future production. The exploration strategy focuses on systematic evaluation to identify new prospects and expand the resource base, as demonstrated by the discovery of three large exploration areas—Juanita, Guanaco, and Droughtmaster—outside existing resources.

Juanita’s discovery results from systematic exploration, showcasing Andean’s ability to identify and assess new mineralised systems within its tenure. The strong cash position, established processing infrastructure, and growing prospect pipeline position the company well for future growth. Managing Director Matthew Allen stated that Juanita is a potentially significant silver-gold prospect with mineralisation distinct from the common vein-style deposits, featuring high-grade silver and gold over a substantial strike length and multiple mineralising events. Upcoming milestones include completing geological mapping and channel sampling along Juanita, followed by systematic drilling to evaluate resource potential and progress toward resource definition.